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5.0. EDSR 07-12-2004 • City of Elk 4-, River TO: ITEM # 5. MEMORANDUM Economic Development Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development 11 DATE: July 12, 2004 SUBJECT: Strategic Industrial Marketing Activities Update I. Product Offering Strategy Industrial Land Issue Staff and Ehlers &Associates have received responses from the landowners of Elk River Business Park and Elk Path Business Center regarding terms of a master development • agreement. They have indicated interest in participating in a master development agreement with the EDA for the development of their industrial/business park property. Staff is forwarding the revised Contract for Initial Sale and Development for the landowners' consideration. I I. Competitive Strategy This past April, Cameron Macht, MN Dept. of Employment & Economic Development (DEED) Labor Market Analyst, provided the EDA with a custom labor market analysis comparing Elk River to its neighboring communities. At that time, the EDA requested future labor market updates. Attached is the most recent Labor Market Profile for Region 7W, which consists of Benton, Sherburne, Stearns, and Wright Counties in the Central MN Planning Region. III. Key Account/Lead Generation Strategy Staff has forwarded a proposal for Elk Path Business Center to an inquiry for up to 10 acres/150,000 SF for a new manufacturing facility. Staff continues to monitor articles/issues important to manufacturers, such as the attached article on page six of MN Technology's newsletter regarding tips for companies considering relocation. IV. Promotions & Advertising Strategy There is no new information to report. Strategic Industrial Marketing Activities Update July 12,2004 Page 2 of 3 • V. Public Relations Strategy Gradient Technology Groundbreaking Event Staff partnered with Gradient Technology and Auth Consulting and Associates (Gradient Technology's construction managers) for the Gradient Technology groundbreaking event held on July 7th. Auth Consulting provided the invitations and the City provided the refreshments,videotaping, and photography. Approximately 20 people were in attendance. Event photos are attached. Economic Development Newsletter The attached fifth edition of the Economic Development Newsletter, the Progress Partner Dispatch,was distributed in early July to approximately 500 people representing the following groups: • Elk River manufacturers • High-tech companies located in Anoka, Sherburne, and Wright Counties • Anoka, Sherburne, and Wright County manufacturers with 20 or more employees • Past&present prospects/inquiries • Key accounts (site selectors, etc.) The purpose is to inform businesses of information useful to their operations and present an "open for business" image. The newsletter is distributed in the Economic Development marketing packets and is also available for download on the City's Website. Business Incubator • Several representatives from the City of Montevideo will be visiting the Business Incubator on July 15th. Incubator consultant Harlan Jacobs is coordinating a tour of the Incubator building, tenants, and graduates. VI. Strategic Partnership Strategy Downtown Revitalization Project The attached June 2004 Downtown Revitalization Project Q &A newsletter was distributed in the Elk River Star News last month. The newsletter responds to some of the recent questions about the project. Energy City Staff has been working with Tammy Miller Design and Action Committee for Energy (ACE) board member Susie Overholser of ECONAR to update the Energy City brochure. Updates to the brochure occur twice a year. VII. Business Retention Strategy Business Retention & Expansion (BRE) Visits Staff and Commissioner Tveite attended a BRE visit with Ed Stoutenburg and Bill Helliwell of NRG on July 8th. The following issues were discussed at the meeting: • Company's unhappiness with the Main St./Hwy 10 intersection redesign which has caused difficulty for trash haulers to maneuver through the intersection 4110 Strategic Industrial Marketing Activities Update July 12,2004 .11) Page 3 of 3 4110 • Company would appreciate notification of City development issues especially as it relates to their transportation routes • Company's concern that the City remain the core Energy City staff • Mr. Stoutenburg's marketing idea for Energy City • NRG's willingness to form future partnerships with the City (recycling programs, etc.) Staff will contact EDA commissioners individually to schedule future BRE visits. Attachments • Region 7W Labor Market Profile,June 2004 • MN Technology Newsletter, Tech Trends,June 2004 • Gradient Technology Groundbreaking Event Photos • Progress Partner Dispatch (Economic Development Newsletter)July 2004 • Downtown Revitalization Project Q &A Newsletter,June 2004 ,1 0 x r 5 4Wn i - � mimpir .%711401# _ • • 6 iff r _ Region 7W Central Minnesot- June 2004 Central Minnesota: Leading the Way Economic Development Region 7W- Figure 2. Job Vacancies and Unemployment in made up of Benton, Sherburne, Stearns, and the Central Minnesota Planning Region* Wright Counties in the Central Minnesota 25,000- Planning Region - is one of the fastest- growing regions in the state and nation. o. a 20,000- Many residents are within driving distance of o both the Twin Cities MSA and the St. Cloud 15,000 MSA, providing explosive demographic growth, ample employment opportunities, 10,000 • and rapidly rising incomes. Figure 1. Central Minnesota Laborshed: Share of R 5,000 Working Residents Commuting to St. Cloud, 2000 0 0 i i i CV N CV N CV O C C M CCV CV C O CV as Na Va CN d Na V Job Vacancies -Unemployed Source:DEED, Labor Market Information Office. -■ Job Vacancy Survey. Online at www.deed.state.mn.us/ -, I Imi/tools/jobvacancy/ *Note: The most detailed geography for which Job %of MCD Residents Commuting to StCloud Vacancy data are produced is Planning Region. The 1Central. Planning Region includes Economic Develop- J11111111111,11111 evelop- ■■, 111 1 01 01-12 2.56% ment Regions 6E, 7E, and 7W. �.■ 1263-40.61%% -25.83-40.21While the state suffered through a recession ;,,�`� aar4021% ed more than 45,000 jobs, * St C that destrothe Cloud four counties in Region 7W added close to �7� t6,000 jobs. At the same time, job vacancies , -wil` have declined during the last three years, :111111111.1111.1111\ while regional unemployment has increased ■■■■■■-` as a result of in-migration. (See Figure 2.) Source: U.S. Census Bureau. 2000 Minor Civil Division Worker Flow Files. Online at www.census.gov p SI y wE o�omi��.,,00m:M rnnesetc Labor Market Information Office, Regional Analysis & Outreach Executive Summary • ECONOMIC DEVELOPMENT REGION 7W Figure 3. Annual Employment Growth: Employment in Region 7W - four counties Region 7W, 1992-2003 located in Minnesota's Central Planning Region - had been growing at a rapid pace throughout 6% the 1990s, before tapering off during the 5.3% statewide recession in 2001. However, Region 7W t ° 4.8% . was able to add jobs while many other regions o 5/O 4 3°7e 4.3% 4.4% suffered severe employment declines. (See Figure 0 ' 3.) 4%E .2% 3.3% Region 7W offers an abundant, well-educated c 3% workforce to businesses in the area. The available E labor force hovered around 200,000 workers w 2°!D I I I 2.0% I 2.0% throughout 2003, up from 185,000 just three years earlier. Even as the labor force has increased, the c region's unemployment rate has remained stable a 17o I ' and tracked with the state rate. 0% INDUSTRY COMPOSITION The region's top-employing industries were °' °' °' °' °' g N N N manufacturing, retail, healthcare and social assistance, and accommodation and food Source:DEED, Labor Market Information Office. services. Together, these four broad sectors Quarterly Census of Employment and Wages (QCEW). generate almost three-fifths of all employment, Online at www.deed.state.mn.us/Imi/tools/gcew/ or close to 75,000 jobs. Rapid population growth has pushed construction into the top-five list of • employing industries in the region. WORKFORCE CHARACTERISTICS Labor force participation rates in Region 7W are above the already-high state of Minnesota rates, p si V Department W Employment especially for women. Overall participation rates J ane Economic Development p�+ t were over 75 percent in every county except 1��(�J GL Stearns, which held at 72.8 percent, compared to Minnesota's rate of 71.2 percent. Wages in the Know Your Market! region are lower than the Twin Cities metro area, Effective decisions require an understanding of although median household incomes are the regional economy and the market-from comparable. This is due to the high number of current market conditions, to residents in Sherburne and Wright County who underlying trends and future commute into the Twin Cities for work. challenges. DEED's Regional Analysis INDUSTRY AND EMPLOYMENT OUTLOOK & Outreach Unit provides Central Minnesota is expected to continue expert analysis services and leading the state in job growth, with employ- customized reports and ment projected to increase 18 percent through presentations; extending 2010. As in all regions, employment growth will labor market information to be concentrated in services-producing industries aid in planning and - including healthcare and social assistance, decision-making. business services, and educational services - while manufacturing and agriculture are In Central Minnesota, contact Cameron Macht expected to add jobs at a more moderate pace. at: 320.231.5174 ext. 7535 or by e-mail at: cameron.macht@state.mn.us. For other However, the statewide recession has caused regions, see the list of Regional Analysts at Initial Claims for unemployment insurance to www.deed.state.mn.us/Imi/contact/ increase since 2000. Likewise, the average unemployment spell has increased. The region is expected to regain strength in 2004. 2 June 2004 The Region's Industry Mix • Table 1. Private Employment and Wages for Industry Sectors: Region 7W, 2003 2003 Private Avg.Weekly Payroll wages Industry Sector Wage (in$1,000s) 2003 Private Sector Employment Employment Ag, Forestry, Fishing, Hunting 1,303 $429 $29,055 0 1,3013 1 Mining 237 $901 $11,091 237 Utilities 1,604 $1,449 $120,825 j 1,64 Construction 10,012 $759 $395,329 10,01 Manufacturing 24,187 $704 $885,729 24,187 Wholesale Trade 6,031 $763 $239,296 6,031 Retail Trade 21,796 $399 $452,388 21, 96 Transport and Warehousing 4,347 $587 $132,620 4,347 Information 2,079 $689 $74,425 2,0 9 Finance and Insurance 4,308 $831 $186,139 4,308 1 Real Estate, Rental, Leasing 1,462 $388 $29,501 1,4 2 Professional and Tech Services 3,359 $738 $128,973 ,359 Management of Companies 754 $929 $36,429 754 Admin and Waste Services 6,092 $424 $134,244 6,092 Educational Services 1,682 $585 $51,153 0 1,642 Health Care and Social Assistance 15,923 $621 $513,874 15,9$3 Arts, Entertainment, Recreation 1,762 $204 $18,712 1,7 2 Accommodation and Food Services 11,850 $185 $113,774 11, 50 Other Services, Ex. Public Admin. 5,226 $356 $96,652 5,226 • Source:DEED, Labor Market Information Office. Quarterly Census of Employment and Wages(QCEW). Online at www.deed.state.mn.us/Imi/tools/qcew/ MAJOR INDUSTRIES Figure 4. Distribution of Jobs by Employer Size Manufacturing was the top-employing private Class: Region 7W, 1st Quarter 2003 sector industry in 2003, offering nearly one in every five (19.5 percent) private sector jobs; demonstrating the region's reliance on the manufacturing industry. (See Table 1.) 100-249 19% With St. Cloud established as a regional center, and many suburban communities growing rapidly, Region 7W also has significant employ- 5049 1-19 ment in retail (21,796 private sector jobs) and 15% 25/ healthcare and social assistance (15,923 private 20-49 sector jobs). Accommodation and food services 18% and construction are the other major industries in the region. Region 7W has an interesting balance of Source: DEED, Labor Market Information Office. employers, with almost half employing either less Quarterly Census of Employment and Wages(QCEW). than 20 employees or (25 percent) or more than Online at www.deed.state.mn.us/Imi/tools/gcew/ 250 (23 percent). (See Figure 4.) ''',''';''''''''''',''''''-'''''''''°r--4" ..* . . m rt4'', . ...I''':411..:4 Tom`".'t`^s`..v.°..,'t , 0':„,,"°w>f v.. .;H., :.;.ror .:,'' ,''''''°0°' , ,x, DEED, Labor Market Information Office, Regional Analysis & Outreach 3 The Region's Industry Mix • Figure 5. "Distinguishing Industries": Regional REGIONAL DISTINGUISHING INDUSTRIES Industries with Above-Average Market Share,2003 DEED defines a region's distinguishing industries as those with a better-than- Furniture&Related Product Mfg. 19.5% average share of statewide industry employment. Region 7W had 5.6 Non etnUic Mineral Pro&tt Mfg. 19A% percent of all Minnesota jobs in 2003. Textile Product Mills 18. % Ten distinguishing industries in the region have an 8.8 percent or greater share of Utilities t 134% statewide jobs. (See Figure 5.) Nonstore Retailers 10.6% Heavy&Civil Eng.Construction 10.5% The region's natural resource base has made nonmetallic mineral product Crop Production 9.9% Manufacturing one of the region's Truck Transportation 9.5% defining industries, while the strong agricultural foundation in Stearns County Motor Vehcie&Parts Dealers 9.0% leads to the area's competitive advan Printing&Related SupportAdivities 8.8% tage in crop and animal production. The region is also home to successful truck Total,All Industries 5.6% transportation companies and heavy 0% 5% 10% 15% 20% 25% and civil engineering construction firms. Share of Statewide Employment Although the industries have suffered setbacks during the recession, nonstore Source:DEED, Labor Market Information Office. retailers, textile product mills, and print- Quarterly Census of Employment and Wages(QCEW). ing companies are still integral parts of • Online at www.deed.state.mn.us/Imi/tools/qcew/ the region's employment history. MAJOR EMPLOYERS Table 2. Major Employers in Region 7W In a reflection of the region's exceptional Name County Primar Line of Business balance between blue- CentraCare/St Cloud Hospital Steams General Medical& Surgical Hospitals and white-collar work, the Cold Spring Granite Co Steams Cut Stone& Stone Prod Mfg area has been called Electrolux Home Products Steams Household Refrigerator&Home Freezer Mfg somewhat recession proof. St Cloud State University Steams Colleges& Universities Gold'n Plump Poultry Inc Steams Poultry Processing Indeed, the region boasts A-1 Toilet Rental& Svc Steams Septic Tank& Related Svcs a mix of manufacturers, Dezurik/Copes-Vulcan Steams Other Metal Valve& Pipe Fitting Mfg agriculture-related entities, Jennie-O Foods Steams Poultry Processing a burgeoning health care Antioch Co Steams Blankbook& Looseleaf Binder Mfg industry, growing K-12 and Bankers Systems Inc Steams Other Commercial Printing post secondary education Merrill Corp Steams Other Commercial Printing Quebecor Printing St Cloud Steams Commercial Lithographic Printing institutions, emerging International Paper Co Steams Paper, Except Newsprint, Mills professional services, a St John's University Steams Colleges & Universities thriving printing industry, New Flyer USA Steams Heavy Duty Truck Mfg an active retail Baueriy Brothers Benton Other Building Material Dealers component, and several Royal Melrose Granite Co Steams Cut Stone&Stone Prod Mfg large public sector Nahan Printing Steams Commercial Lithographic Printing employers. That diversity is Bemick's Pepsi Cola Steams Other Grocery Prod Merchant Whols reflected in the list of the US Veterans Medical Center Steams Other Hospitals area's top employers. (See Table 2.) Source:InfoUSA. 2004 ALMIS Employer Database. Online at www.iseek.org "'*` 'h• :% u.r�o-„ .;.J;,° , ,':r, ', %.?'"�t»Q;; e ,'; \--a:-,4,-z7,,,--74:',':g.-,:,417, .,:1,.:. :14,'''; :v?.;�a . r, 3.r, * a '';,',V. 4 June 2004 Regional Wage Structure i REGIONAL WAGES Figure 6. Wage Distribution of All Jobs: 2002 In most industries, wages in Region 7W are slightly lower than metro and state averages. Region 7W Wage Distribution Nearly one-third (32 percent) of all jobs pay less than $10 an hour. Another 46 percent pay moot. . 0.00 t0 $25.00 to between $10 and $20, while only 22 percent $19.99 $24.99 $29.99 pay $20 or more. (See Figure 6.) 16% 9% 5% $30.00+ OCCUPATIONAL WAGES 8% wage for all occupations in the 510.00 to The median -� p $ta.ss Statewide Wage Distribution Central Planning Region, which includes 30% $25.00t0 Region 7W, is $12.96 per hour. The highest- $$999 Min $20.00 to - $28'99 paying jobs are typically found in professional, 31% WageLesor $24.99 '% technical, and healthcare occupations, which 1% $x;999 t0% $30.00+ require higher levels of education and experience. The lowest-paying jobs are _.,.„„. concentrated in food preparation and $1000 to serving, sales, and personal care and services. Source:DEED,Labor $14.99 $5.16 to i (See Table 3.) Market Information Office. 25% z„ Min Wage or WagThe occupational group with the largest Online at �.,� � �. employment in Central Minnesota is office and www.deed.state.mn.us/ administrative support, followed by Imi/tools/gcew/ production, sales, and food service jobs. Table 3. Wages by Occupation: Central Planning Region • Regional Regional Wage Range (10th, 50th, 90th Occupation Group Median Employ percentiles) Wage $0 $10 $20 $30 $40 $50 Management Occupations $31.54 9,200Nit' Life, Physical, and Social Science Occupations 23.80 1,350 miusili.• Legal Occupations 22.59 1,170 Computer and Mathematical Occupations 22.45 3,060 ININIMERNMI Healthcare Practitioners and Technical Occupations 21.85 12,800 IIIIIIIIIII� Business and Financial Operations Occupations 21.68 7,900 11111.11� Architecture and Engineering Occupations 21.43 3,510 1111d1� Construction and Extraction Occupations 18.59 11,140 MN.= Education, Training, and Library Occupations 18.20 17,700 IIMIIMIIN Installation, Maintenance, and Repair Occupations 16.56 8,120 I=11 Protective Service Occupations 15.91 4,140 (•� Community and Social Services Occupations 14.45 4,120 I•M11.1 Arts, Design, Entertainment, Sports, and Media 14.41 1,770 1•11111111M Transportation and Material Moving Occupations 12.90 17,940 MIl• Production Occupations 12.82 27,450 =MIN Office and Administrative Support Occupations 12.14 33,990 lIl• Farming, Fishing, and Forestry Occupations 11.51 800 111111.111 Healthcare Support Occupations 10.64 6,930 ill■ Building and Grounds Cleaning and Maintenance 9.77 6,420 ■IIS Sales and Related Occupations 9.48 26,910 ■11111 Personal Care and Service Occupations 8.87 5,000 ■Il• Food Preparation and Serving Related Occupations 7.16 21,850 I. ALL OCCUPATIONS 12 a� Source: DEED, Labor Market Information Office. Occupational Employment Statistics (OES). Online at www.deed.state.mn.us/Imi/tools/oes/ Note: The most specific geography for which OES data are produced is Planning Region. The Central DEED, Labor Market Information Office, Regional Analysis & Outreach 5 A Shifting Economy • INDUSTRY EMPLOYMENT Table 4. Industry Employment Growth: Region 7W, 2000-2003 Despite a state recession, positive changes have 2000 2003 Chane taken place across the local Industry Average Average 20002003 Percent Change 2000-2003 economy. Region 7W Employ Employ actually added close to Total,All Ownerships 138,065 144,056 5,991 4% 6,000 jobs from 2000 to 2003, Total,Private Sector 118,709 124,013 5,304 4% with major job gains in Agriculture,Forestry,Fishing& 1,213 1,303 90 7% healthcare and social Mining 177 604 62 3 Utilities 1,542 1,604 62 4% assistance, construction, Construction 7,990 10,012 2,02225% and accommodation and Manufacturing 26,010 24,187 -1,823 -7% Wholesale Trade 6,097 6,031 ss -1% food services coming from Retail Trade 22,729 21,796 -933 -4% the growing population. Transportation and Warehousing 4,172 4,347 175 4% Information 1,962 2,079 117 I 6% In 2000, the single largest Finance and Insurance 3,534 4,308 774 22% Real Estate and Rental and Leasing 1,496 1,462 -34 -2% sector was manufacturing, Professional and Technical Services 3,242 3,359 117 4% with 26,010 jobs, or about Management of Companies and Ent. 627 754 127 20% 19 percent of the regional Administrative and Waste Services 5,751 6,092 341 6% Educational Seances 1,507 1,682 175 12% total. In the two years that Health Care and Social Assistance 13,546 15,923 2,377 18% followed, manufacturing Arts,Entertainment,and Recreation na 1,762 na 0% declined over 7 percent, Accommodation and Food Services 10,856 11,850 994 g% dropping to 24,187 jobs. Other Services,Ex.Public Admin 4,884 5,226 342 i 7% Retail trade also suffered job declines during the Source:DEED, Labor Market Information Office. Quarterly Census of recession, mostly because of Employment and Wages (QCEW). Online at www.deed.state.mn.us/ • losses in nonstore retailers. Imi/tools/gcew/ Table 5. Occupational Projections: Central Planning Region*, 2000-2010 Regional Percent Net Job Net Total Employ Change Growth Replacements Openings Occupation 2000 2000-2010 2000-2010 2000-2010 2000-2010 Management Occupations 19,193 6.4 1,220 2,470 3,690 Business and Financial Operations Occupations 7,729 23.1 1,784 1,533 3,317 Computer and Mathematical Occupations 2,212 54.8 1,212 203 1,415 Architecture and Engineering Occupations 3,956 9.7 382 923 1,305 Life, Physical,and Social Science Occupations 1,235 14.9 184 328 512 Community and Social Services Occupations 4,644 36.7 1,706 767 2,473 Legal Occupations 1,215 17.1 208 91 299 Education, Training,and Library Occupations 16,963 22.7 3,845 3,723 7,568 Arts, Design, Entertainment, Sports,and Media Occ 2,417 24.4 590 419 1,009 Healthcare Practitioners and Technical Occupations 11,451 28.5 3,269 2,542 5,811 Healthcare Support Occupations 7,266 32.3 2,348 1,144 3,492 Protective Service Occupations 3,676 20.6 758 1,027 1,785 Food Preparation and Serving Related Occupations 21,448 21 4,505 9,706 14,211 Building&Grounds Cleaning&Maintenance Occup. 9,473 24.4 2,312 1,904 4,216 Personal Care and Service Occupations 9,821 27.5 2,698 2,832 5,530 Sales and Related Occupations 31,386 17.4 5,472 9,961 15,433 Office and Administrative Support Occupations 37,777 14.7 5,550 8,187 13,737 Farming, Fishing,and Forestry Occupations 3,962 6.2 244 1,232 1,476 Construction and Extraction Occupations 12,688 19.2 2,431 2,288 4,719 Installation, Maintenance,and Repair Occupations 10,597 16.7 1,770 2,450 4,220 Production Occupations 33,848 4.2 1,431 8,022 9,453 Transportation and Material Moving Occupations 19,584 19.5 3,817 4,531 8,348 Source: DEED, Labor Market Information Office. Employment Outlook, 2000-2010. Online at www.deed.state.mn.us/Imi/tools/projections/ Note: The most specific geography for which Projections are produced is Planning Region, The Central 6 June 2004 Job Availability Figure 7. Job Vacancies and Unemploy- As the state has coped with a recession and ment: Central Planning Region* lingering jobless recovery, the number of 2 25,000 unemployed workers has been on an upswing, while the number of job vacancies has 20,000 declined. (See Figure 7.) 0 In the lastest Minnesota Job Vacancy Survey, E 15,000 the highest demand in the Central Planning Region, which includes Region 7W, was for io,000 - - skilled office and administrative support workers, transportation and material moving 5,000 positions, and personal care and services workers. Entry-level jobs in food preparation and serving and sales and related occupations 0 o I I also had high demand. The region also had a N M M 0 0 0 0 0 0 0 need for healthcare practioners and support N N N N N N N a as a a a as a workers. (See Table 6.) The median wage offer for openings was $11 moJob Vacancies -Unemploy;]] an hour, while the survey identified only 24 Source:DEED, Labor Market Information Office.Job percent bf jobs requiring higher education. Vacancy Survey. Online at www.deed.state.mn.us/Imi/ tools/jobvacancy/ EMPLOYMENT PROJECTIONS Table 6. Job Vacancies: 4th Quarter 2003, Central Planning The Central Planning Region, Region* which includes Region 7E, is Regional Regional Statewide MN Job Vacancy Job Vacancy projected to be the fastest- Occupation Group Vacancies Rate (%) Vacancies Rate(%) growing region in the state. Office and Administrative Support 1,445 4.1% 6,208 1.4% Employment is expected to Sales and Related 606 2.2 5,971 2.1 increase 18 percent or 50,000 Healthcare Practitioners and Technical 184 1.4 5,011 3.8 jobs, jumping from 272,500 in Food Preparation and Serving Related 531 2.3 4,768 2.4 2000 to 320,300 in 2010. (See Healthcare Support 179 2.4 4,441 6.1 Table 5.) Construction and Extraction 252 2.3 3,841 3.4 Production 353 1.3 3,013 1.3 Transportation and Matenal Moving 727 4.1 2,962 1.8 Led by computer support Education, Training and Library 117 0.6 1,820 1.2 specialists, where employment Installation, Maintenance and Repair 337 4.0 1,716 1.7 is projected to double, five of Business and Financial Operations 254 3.2 1,694 1.3 the top 10 fastest-growing Management 57 0.6 1,412 1.1 occupations in the Central Personal Care and Service 367 6.9 1,196 1.8 Community and Social Ser,ices 31 0.9 1,039 2.5 Planning Region are computer- Building, Grounds Cleaning and Maintenance 128 1.7 1,030 1.2 related. Another four are in Architecture and Engineering 27 0.8 893 1.8 healthcare and include Life, Physical and Social Science 8 0.6 793 3.3 medical assistants, Computer and Mathematical 32 1.0 773 1.1 veterinarians, health Art, Design, Entertainment and Media 82 4.2 610 1.8 information technicians, and Protective Service 1.1 526 1.1 Legal NAA NA 266 1.5 personal and home care aides. Farming, Fishing and Forestry NR NR 97 2.1 ALL OCCUPATIONS 5,768 2.4% 50,080 r 2.0% Cashiers, retail salespeople, and office clerks will add the Source:DEED,Labor Market Information Office.Job Vacancy Survey. most new jobs overall. Online at www.deed.state.mn.us/Imi/tools/jobvacancy/ *Note:The most specific geography for which Job Vacancy data are produced is Planning Region. The Central Planning Region includes , Economic Development Regions 6E, 7E and 7W DEED, Labor Market Information Office, Regional Analysis & Outreach 7 Demographics: Unemployment, Education, Immigration • UNEMPLOYMENT Figure 8. Unemployment Rates: Despite continuing job growth, Region 7W's Region 7W, Minnesota, and US, 2000-2003 unemployment rate has closely tracked that of the state over time. This is due to the high levels 7% of in-migration, which have led to a rapidly increasing labor force. Region 7W ended 2003s , % at 5.3 percent, which was slightly higher than the state's 5.0 percent rate, but lower than the d 5°i° U.S. rate of 6.0 percent. (See Figure 8.) E 1111.11 c 4% Unemployment rates were very similar through- out the region. Stearns County had the lowest ' 3°/° rate at 4.8 percent, while Sherburne County 2% i posted the highest year-end rate at 5.8percent. 2000 2001 2002 2003 EDUCATION —oUnited States -is-Minnesota tEDR7W Region 7W offers a well-educated labor force and is home to several post-secondary institutions providing technical and advanced Source:DEED, Labor Market Information Office. educational programs. St. Cloud State Univ. is Local Area Unemployment Statistics (LAUS). the largest institution in the area, serving over Online at www.deed.state.mn.us/Imi/tools/ 16,000 students in 2002. Over 87 percent of the laus/ population aged 25 years and over has at least IMMIGRATION a high school diploma; about 14 percent have Less than 75 percent of the region's residents a bachelor's degree or higher. (See Figure 9.) lived in the same county in 2000 as in 1995. In- Over half (53 percent) of the population has migration has become very important to the area, as the Twin Cities metro area stretches attended some college, including close to 8 farther north and west, almost connecting with percent with an associate's degree, one of the the St. Cloud metro area, which is expanding best rates of technical education in the state. east and south along Interstate 94. (See Table 7.) Figure 9. Educational Attainment of Region 7W's Table 7. Migration, 1995-2000, of Region Adult Residents, 25 Years and Older: 2000 7W's Year 2000 Residents Advanced M5,017 Region's Degree 5,91• 2000 Bachelors 14,093 Place of Residence in 1995 Population 2,891 Same house in 1995 168,923 56.7% Associate's 7, 89 Same county in 1995 49,826 16.7% 7,.91 Came from other county 60,543 20.3% 26,015 Other state 14,090 4.7% Some College ,931 Other nation 2,194 0.7% High School 32,495 Total 297,886 100.0% Diploma 33,401 < 12th Grade 11,355 - 12,899 ■Male ■Female Source:U.S. Census Bureau. Census 2000, SF-3 8 June 2004 Demographics: Aging Population, Fewer Workers • IN THE LABOR FORCE Figure 10. Labor Force Participation: 1990-2000 Labor force participation rates in Region 7W are significantly higher than elsewhere in the state, mainly because of the region's explosive — 7 ■1990 6.5% population growth over the last decade. 70 and over a 2000 8.8% Participation rates are highest for workers in 24.9% their 20s, 30s and 40s, and lower for older 65 to 69 29.1% cohorts. (See Figure 10.) 0 55 to 64 62.8% THE POPULATION AGES 0222 65.60 The 45- to 54-year-old age bracket comprises 4, 88.6% the fastest-growing segment of the population < 25 to 54 89.0% as Baby Boomers get closer to reaching 80.1% retirement age - and continue to live longer. 20 to 24 This may have significant ramifications for the iiiimosa 92.0% region's workforce. There is some debate as to 16 to 19 whether economic conditions and longer lives 66.4% might compel older workers to remain in or reenter the market. 0% 25% 50% 75% 100% Labor Force Participation Rate But Region 7W also is seeing rapid growth in workers between the ages of 25 and 44, Source:U.S. Census Bureau. 1990 Census STF-3 and considered the "prime working years." Central Census 2000 SF-3 Minnesota is projected to be one of the fastest- growing regions in the state, both in overall population and also in available labor force. (See Figures 11 and 12.) Figure 11. Adult Population Projection: Figure 12. Projected Growth in Working Region 7W, 2000-2030 Age Population: Region 7W 450,000 30,000 - 400,000 c 7 350,000 — - .,, 0 25,000 a 300,000 ■ •■ I 20,000 1 1 1 250,000 in Q 200,000II. ' ' , ' 15,000 v 2 27180 150,000 , , I 10,000 21200 2 100,000 , , , ' w a I I15,600 u 50,000 11111111111111111111111 ■ ■ . . . ' . . .0 5,000 s eoo 7,200 7,000 a 0 II r III O O N N M LO O LO O MO 000 0000 O N NM NNN NNNN N OO N N NNN ❑15 to 24 ■25 to 54 ■55 to 64 ❑65 and over Source: Minnesota State Demographer. Population Projections, 2000-2030 DEED, Labor Market Information Office, Regional Analysis & Outreach 9 Unemployment Insurance Activity 41/ INITIAL CLAIMS FOR UNEMPLOYMENT Table 8. Initial Unemployment Claims by Industry INSURANCE Unemployed workers in the region filed NAICS 25,208 Initial Claims for unemployment Code Industry 2001 2002 insurance in 2003. This was an increase 11 Ag, Forest, Fishing 130 186 of 17 percent from 2001. Despite the 21 Mining 102 111 job growth in the area, unemployment 22 Utilities 220 354 rates, exhaustions*, and average 23 Construction 6,413 8,499 unemployment duration have all 31-33 Manufacturing 5,656 4,647 42 Wholesale Trade 799 888 shown increases during the recession 44-45 Retail Trade 2,726 2,987 and recovery. (See Table 8.) 48-49 Transportation&Warehousing 656 681 (* Exhaustions are the number of 51 Information 181 222 persons that have used their entire 52 Finance& Insurance 215 275 benefit.) (See Table 9.) 53 Real Estate, Rental& Leasing 154 230 54 Professional, Scientific,Technical 904 785 Goods-producing industries (NAICS 55 Mgmt of Companies & Enterprises 6 19 56 Admin Support&Waste Services 1,438 1,794 Codes 1-33) account for 60 percent of 61 Educational Services 378 463 all claims filed. However, 62 Health Care and Social Services 479 707 manufacturing started an encouraging 71 Arts, Entertainment, and Recreation 129 170 trend of fewer layoffs and fewer initial 72 Accommodation and Food Services 386 468 claims since 2001. 81 Other Services (except Public Admin) 290 372 92 Public Administration 136 139 The count of Initial Claims is not a TOTAL, 21,550 24,075 count of people, as some workers file multiple claims during the year. This is Source:DEED, Labor Market Information Office. Unemploy- O most noticeable in construction and ment Insurance Statistics. Online at www.deed.sfate.mn.us/ other seasonal industries. Construction Imi/tools/ui/ is responsible for almost 37 percent of all Initial Claims. Table 9. Exhaustions of Unemployment CONCLUSIONS Region 7W and the St. Cloud area is a vital, Insurance Benefits: Region 7W growing regional center in the middle of Average Minnesota. The total labor force in the region has duration of reached 200,000 and is growing rapidly both Benefits benefits through increased in-migration and healthy exhaustions (weeks) demographic changes. 2001 Total 2,505 12.7 This growth has provided area employers with a 2002 Total 4, 88 14.2 highly-skilled, available work force and a steady 2003 Total 4,5588 14.1 consumer base. While St. Cloud draws workers Source:DEED, Labor Market Information Office. Unem- from surrounding communities, many Sherburne ployment Insurance Statistics. Online at and Wright County residents commute elsewhere www.deed.state.mn.us/Imi/tools/unemployment/ui/ for work. Labor force participation rates in the Figure 13. Selected Poverty Rates: area are above the already-high state of Region 7W, 2000 Minnesota rates, especially for women. All ages 6.6'0 With nine post-secondary training institutions in .1111=iii. the immediate area, the St. Cloud area offers 65 and over1111111.11111119.1% one of the most well-educated, technical work 18 to 64 6.4°. forces in a state that is well-known for MEMINIM educational excellence. Enrollments are Under 18 6.1% increasing at many of the area education 0% 2% 4% 6% 8% 10% institutions. our e• ,,C-n us 'ur-•4.c- ,P9 . 10 June 2004 TechTrends e-Newsletter May,2004 Page 1 of 7 I e la. a l s .ale Print Volume 5, Issue 6 Close ig i ,, a publication of MinnesotaT aFilol ;In. F; This issue of Tech Trends is sponsored by RMC Project Management.owl l II 1111 IIIII '' RMC qi c t 1 RMC Project Management is a Minnesota-based company that has been trainiJuneng2004 project managers for 12 years. Our courses were developed by Rita Mulcahy, PMP, the author of PMP Exam Prep. We offer a combo class in Minneapolis, which includes the Project Management Tricks of the Trade (3 day) and PMP Exam Prep (2-day) courses. These are fast-paced intensive courses that guarantee you will pass the PMP exam. With the class you get Rita's RMC PMP Exam Prep system—PMP Exam Prep, PM FASTrack exam simulation software, and Hot Topics flashcards. Register today at www.rmcproject.com and use promo code EMMTMA4 to get $100 off tuition. Sign up for RMC e-mails with future classes, products and free project management tips at www.rmcproject.com. — v ,t.” ItoryEC , uco e sir_ , ,. Taking the Plunge x 0 Diving into a new market? Be prepared! Introducing a new product can be exciting—but it's also time-consuming and riddled with uncertainty. After all, the success rate for new products is staggeringly low (consulting firm Booz Allen & Hamilton estimates that only one idea in 58 will actually become a profitable product). But research also suggests that an organization's chances for success increase dramatically when it invests the time and energy to learn what customers want. You may have a handle on who your current customers are. But how well do you know your prospective customers? A market opportunity analysis can eliminate much of your team's new-product jitters by gathering as much insight as possible before you hit the drawing board. After all, • "research costs are much lower than engineering costs," says Don Hayward, an MTI 411411 business services advisor. "Wise companies learn as much as possible before making substantial investments in engineering and product design." A market opportunity analysis fits into your company's larger strategic planning by http://www.minnesotatechnology.org/publications/techtrends/2004/June/printVersion.asp 6/15/2004 TechTrends e-Newsletter May 2004 Page 2 of 7 pinpointing marketplace strengths and weaknesses and identifying unmet opportunities. The information you gather will become part of your company's • overall strategic market planning, and will drive new product development. An effective market opportunity analysis should: 1. Identify unmet or underserved customer needs 2. Identify a customer base 3. Assess your company's competitive advantages 4. Assess your company's ability to deliver new offerings 5. Assess your production readiness 6. Specify the opportunity in concrete terms: who/what/when/how much? 7. Assess the attractiveness of the opportunity for your business. According to Hayward, a series of simple questions can help you determine the effectiveness of your current marketing and new product development efforts. o What percentage of last year's sales was for products fewer than one year old? o What about two years? o How many new customers have you added during that same period? o Are your margins expanding or contracting? If you're uncomfortable with the answers, you need to increase your investment in market analysis, Hayward advises. Next, think of your last new product introduction. Did you sell as many as expected? • Were your buyers who you expected them to be? Was the impact on your bottom line what you wanted? Again, if you found yourself surprised or disappointed by the answers, Hayward recommends applying a rigorous market analysis to your next new product effort. To that end, an outside perspective can be invaluable. If your organization is considering an overhaul of your marketing practices, consider bringing in a team of seasoned consultants who know your marketing challenges—and opportunities. MTI's Strategic Management team applies market analysis as a best practice, offering a high ROI over the long-term for companies that are ready for growth. To learn more about market opportunity analysis and MTI's Strategic Management services, call 612-373-2900 or 800-325-3073, or visit http://www.minnesotatechnology.org/business/strategic.asp. HTeth Notes Technology business news from around Minnesota. Alger Delta Electric Cooperative of Gladstone, Mich ., recently announced that it will install Hunt Technologies' TS2 two-way power line carrier-based automatic meter reader across its entire service area. Pequot Lakes -based Hunt Technologies Inc. manufactures and sells information and control systems for the utilities industry. • Midwest Motion Products of Watertown has recently accepted a high-volume order for one of its DC Gearmotor designs, which provides motion control for the Ordnance Disposal Robot. The multi-axis remote-controlled robot is being deployed in Iraq to secure and move hazardous and suspicious material. http://www.minnesotatechnology.org/publications/techtrends/2004/June/printVersion.asp 6/15/2004 TechTrends e-Newsletter I May 2004 Page 3 of 7 D.L. Ricci Corp. , a Red Wing -based portable machining supplier, will introduce its MM180 pipe-beveling tool this summer. According to the company, it is one of the largest gear lathes in the world. Alexandria -based Donnelly Custom Manufacturing has received a Supplier Excellence Award from Fargo Electronics , an Eden Prairie -based developer and manufacturer of personalized I.D. card systems and printers. The award recognizes Donnelly's contribution to Fargo's Quality Management System. Donnelly Custom Manufacturing produces custom injected-molding pieces. Governor Tim Pawlenty has signed a bill that will allow environmental permitting for a production-scale iron nugget demonstration plant in Silver Bay . Silver Bay's Mesabi Nugget LLC will run the pilot demonstration and research facility at the former LTV taconite processing site in Hoyt Lakes . The plant was developed, in part, with $16 million in state loans from Iron Range Resources and the Minnesota Department of Employment and Economic Development . Shoreview -based PaR Systems Inc. has announced that Seattle -headquartered Westinghouse Electric Co. LLC has purchased an 81 percent interest in its PaR Nuclear utility fuel handling, crane, and service business. PaR Systems provides automation equipment to the aerospace, marine, industrial, food and beverage, government, and hazardous materials management markets. Westinghouse Electric Co. is a nuclear power company and supplier of nuclear plant products. Under terms of the deal, both PaR Systems and PaR Nuclear will remain in Shoreview. Two companies have announced plans to open facilities in Moorhead's Job Opportunity Building Zone (JOBZ) : Midwest Construction Services Inc. is a • North- and South Dakota-based holding company for seven separate companies that make and develop electricity-generating windmills. Fargo, N.D. -based RDO/PROffutt is the country's largest John Deere dealership and parts facility. The two companies will bring at least 150 new jobs to Moorhead over the next two years, announced Governor Tim Pawlenty . to LeCenter . Shetka Works The JOBZ program has attracted two companies , a startup manufacturer of tabletops, counters, and work surfaces from waste pulp, paper, and fiber products, estimates that it will employ between 20 and 40 people in its first year of production. Its owners have purchased a 24,000-square-foot building in LeCenter, and report that the company will invest $3.4 million in the operation. Electronic Assembly Specialists , a new business specializing in low- cost circuit board assembly, reports that it will employ up to 25 people in its first year, and plans to spend $750,000 to set up production. Barrel O' Fun , a Perham-based snack food manufacturer, has announced plans to build a $14 million production plant. The project will make the company Perham's first JOBZ program participant. According to the company, the building project will include a new 100,000-square-foot facility and will create 22 new production jobs in the next two years. Barrel O' Fun currently employs about 300 people and processes more than 50 million pounds of potatoes annually for its snack chips. Austin-based Hormel Foods Corp. has elected Jeffrey M. Ettinger its president and CEO—the ninth in the company's 113-year history. He succeeds Joel W. • Johnson , who has headed the multinational food processor since 1992. Beginning July 1, Ettinger will oversee the company's grocery, refrigerated, specialty, and turkey segments. http://www.minnesotatechnology.org/publications/techtrends/2004/June/printVersion.asp 6/15/2004 ';1110 411) J1\ U, 'IAA R \; .."111.I EN SE *.Int, 4t ..owk o . t"tl'i. Internet riot �•4let 1 * "441,,M '�"�y,,,,„ ,,,,,��:..a^a.> :�tta uh,:; ,, <,.,. � 'v x�wl/ ,�,!,u _, Special Announcement I Seminar Alert: Unleashing the Power of Your Intellectual Property—Tools for Maximizing Your IP Dollars On Tuesday, June 15, 2004, Patterson, Thuente, Skaar & Christensen and Minnesota Technology, Inc. will present a special seminar that will show how companies can put their intellectual property to work and create tangible business value. The seminar will cover key legal and accounting issues, provide strategies for unleashing the value-generating potential of your portfolio, and reveal the secrets for looking attractive to the venture capital community. For more information, see the calendar listing below. Seminar: Unleashing the Power of Your Intellectual Property Sponsored by Patterson, Thuente, Skaar & Christensen, P.A. Date: 6/15/04 Time: 8 a.m.-3 p.m. Cost: $150 (includes continental breakfast and lunch) Location: Windows on Minnesota, IDS Center, Minneapolis Registration contact: Click Here to Register Featured Speakers: • Patrick Sullivan, author of Value-Driven Intellectual Capital • William Hogan, The Hogan Company • Renee Marino, LarsonAllen 1111 • Jim Patterson, Patterson, Thuente, Skaar & Christensen, P.A. • Brad Pedersen, Patterson, Thuente, Skaar & Christensen, P.A. Lean Training: Executive Overview http://www.minnesotatechnology.org/publications/techtrends/2004/June/printVersion.asp 6/15/2004 TechTrends e-Newsletter May 2004 Page 5 of 7 Date: 6/16 Time: 8:30-11 a.m. Location: Hutchinson Conference Center, Hutchinson, Minn. Cost: $39 Click Here to Register Seminar: How to Do Business with the State Sponsored by: Minnesota Department of Administration and Iron Range Resources Date: 6/23 Time: 10 a.m. to 12 p.m. Location: Mineland Reclamation Classroom, Ironworld Discovery Center Complex, Hwy.169 W., Chisholm, Minn. Cost: Free of charge. 'SE Contact: RSVP to Tracy Peterson at 218-744-7400 or tracy.peterson@ironrangeresources.orq Featured speaker: Brenda Willard, acquisitions manager, Minnesota Department of Administration Topics include: . Targeted group vendors . Economically disadvantaged vendors . Labor surplus area vendors . State of Minnesota bid qualifications • • Bid procedures . Q & A session with Department of Administration and Iron Range Resources staff members MTI Technology Awareness Forum: Radio Frequency Identification (RFID) Date: 7/14 Click Here to Register MTI Technology Awareness Forum: Food Security Date: 8/11 Click Here to Register MTI Technology Awareness Forum: Business Growth—Performance Date: 9/8 Click Here to Register MTI Technology Awareness Forum: Marketing Technology Date: 10/13 Click Here to Register MTI Technology Awareness Forum: Strategic Vendor Selection Date: 11/10 Click Here to Register' • MTI Technology Awareness Forum: NASA Technology Transfer Date: 12/8 I Click Here to Register http://www.minnesotatechnology.org/publications/techtrends/2004/June/printVersion.asp 6/15/2004 TechTrends e-Newsletter I May 2004 Page 6 of 7 Perspective Trading Places • Relocatinga business is never easy; here area few tips to consider as you start the p process. By any measure, relocating a business is a demanding process. Once you make the decision to move (no small task in itself), there are a host of matters to consider— everything from finding a new facility to negotiating a lease or purchase to dealing with realtors. Of course, those are in addition to the challenges posed by the need to pack and unpack, forward mail, print new business cards and stationery, deal with IT issues, and the like. In short, it's a huge topic. That said, here are some basic considerations and strategies to keep in mind as you plan your move. Employee buy-in Want to avoid disruption and maintain productivity as much as possible during the moving process? Get your employees to accept and buy into it. The first step is to make sure everyone understands the reasons for the move and what it will accomplish—along with the challenges it will present. Another way to get buy-in: Create a moving team and a moving team leader that can manage specific aspects of the relocation process. Location matters Yes it's overused, but there's a reason why the cliché gets repeated. Your new 411 location will have a ripple effect on all areas of your operations. How will it affect your current employees, who may or may not want to commute to the new spot? Will the new area be enticing enough to allow you to recruit new employees? Does the new location have high-speed Internet access and other necessary infrastructure components? What impact will it have on your customers? ; Special economic zone opportunities Another option to consider: special economic development areas that offer relocation incentives. Many cities and counties offer relocation-related perks and programs. One, the State of Minnesota's Job Opportunity Building Zone (JOBZ) program, has gained steam of late. Designed to stimulate economic development in rural areas by providing tax exemptions, the zones can be attractive options for businesses looking to pack up and move. For more information on the JOBZ program, see the Minnesota Department of Employment and Economic Development's (DEED) Web site: http_J/www.deed.state.mn.us/programs/jobz.htm. In a similar vein, DEED also offers a range of services and information for companies looking to relocate—including permit and licensing basics, local community profiles, real estate information, and much more. Check out http://www.deed.state.mn.us/businessdevelopment.htm. http://www.minnesotatechnology.org/publications/techtrends/2004/June/printVersion.asp 6/15/2004 TechTrends e-Newsletter May 2004 Page 7 of 7 • MEP AtU1iate Home Contact Us Site Map Privacy Policy Terms of Use © 1994-2004, Minnesota Technology, Inc., All rights reserved webmaster©mntech.orq PHONE: 612-373-2900 FAX: 612-373-2901 http://www.minnesotatechnology.org/publications/techtrends/2004/June/printVersion.asp 6/15/2004 Auth• Consulting/Assoc. CQ • Phone: 715-232-8490 406 Technology Drive E., Supe . _ 3✓ • »mac g ' r `,.. A k,,, -,.,..,76-,maax ++c $�1',, ,. ' vtit ' � r to , r of " r` ° i 1 .1d -.- /. • '. k r -. , • s , ry __ gin. , " —) . , . . ,.,, , ,,,..,,„.,„..,„,„,,,.....-,....-;!t).:;.-44,t.,,,,-,-1,7;„,!;*gr.%:ir:.,,,14,;;;`-;$..-1.',„ ''',-,;,',:,".'".°'--..„'""..,:',...,-J",,-;'''''''''.'',71' ' ': s •d '.P;"4",#:;,,,,„..." � ° xax �� MvS 'j 'r9d�lla p4` �1r � �a w. f n i x"s - r• est ° Iufiane'Go'esCfi . ` v +?g rF t i s' s ax - € +k m LW o.. N . u I .+m :r.-„, -- wYA'YPC .�r.«AM}�v .«.. .nu r ...•,, am .' s d".... II) • Architectural A( (ci Engineering ncing by- •fC� Building Design Auth•Consulting/Assoc. Construction 1885 Et A - Phone: 715-232-8490 FA: 406 Technology Drive E.,Suite A,Menomol ' I OF NEIL ,n T k < .q m r m, ber FDIC , `,/,...t: . 'Nt ...,;„:, „,,,,,,,,,, 1 / >%,,,,i'' Ili' Itir,,,,,,„„„ r IIIF � � '�� Pl,;, 7.-�� ///«Ifi � 4MAY •if } f _ iy Ic !tf4itL� y�: 17;1 H;.,.... ` yv , ' �',:'t 1 �I ‘. 1 �r� Ip•;�ri� .�Y �y �� � � l •. f f' ,� 4Y � �t .. t * -...'- Gradient Technology Project Partners 41111 • ILPFOGOESSARTNERch \ City ofElkt-, RiverJuly 2004 he Light Industrial Hub of the Northwest Metro Farmland will now grow businesses SEEDS OF SUCCESS HAVE BEEN SOWN AT ELK PATH BUSINESS CENTER seat of Sherburne County,one of •_' f the nation's fastest-growing ,,•:-IV .-. -- _••':' _ __�_ = ;j�� counties. That puts the spotlight - 3' Court Cnurt'House ' ; r pr } ty "- on the Wilson property which,at - J-`—( – eSs Dente ,7t,',1,--,.� , .. more than 93 acres,is one the � : . _ 4;+�=-~ o"sin `�°' " community's largest remaining SITE n undeveloped parcels for business 5.j,.. �' :Y.5wr s0 park users. ` •. FS "Elk River is a big and bursting mISsissippi Rd Mw l . ;:. community,"says Mr.Wilson,who •• r• - sees the growth firsthand as a vice ¢ �-g president with The Bank of Elk River and as the chair of the city's II �` = _ '—. Nom'' �: .3' ,��_ r �`r`' Housing and Redevelopment Authority. It's no longer an Mississippi River `" ' v �' �' unknown quantity. There are lots of Photo courtesy of folliers Tuley Martin Tucker things happening here." Elk Path Business Center offers one of the largest undeveloped industrial sites in the The property has been christened northwest metro area. Elk Path Business Center,Business Center Drive has been constructed Elk Path features: to ease access,and all needed LiLand that has historically nfrastructure has been extended, grown corn,wheat and soy • easy access to major providing electric,water,gas,sewer eans will soon be sprouting transportation routes; and fiber optic service. a new crop:commercial,office/ • flat,buildable lots; "It really has great location,"Elk showroom and manufacturing • access to all needed River Mayor Stephanie Klinzing infrastructure;and says."It has great visibility and easy businesses. • competitive land costs. access off of Highway 10" Golfers Elk Path Business Center,at will appreciate that Elk Path is also the southeast corner of the Stewart T.Wilson is part of a right across 182nd Ave.N.W.from family partnership that has owned Pinewood Golf Course,the Mayor intersection of U.S.Highway 10 the land since the mid-1960s. A and Waco Street in Elk River,is ripenotes. p "greenfield"site in the true sense "I think what Elk Path Business for development. All needed of the word,the property has been Center really offers is flexibility," infrastructure is in place and,as used as a horse pasture and rented adds Chris Pendroy,CCIM,a senior • the largest undeveloped light to farmers during the years. g passociate with Colliers Towle Turley industrial site remaining in Elk More recently,however,city Martin Tucker,which is marketing River,Elk Path would be ideal for officials approached the family the property. Although there is with another type of growth in plenty of space for a large user, a large corporate campus or majorthe land could also be used for a manufacturer. mind.Elk River happens to be the continued on page 2 )44) . River 0065 Orono Pkwy River,MN 55330 continued from page Patience pays off for Elk River venture collection of smaller businesses, ECONOMIC REBOUND REVIVES ORLUCK INDUSTRIES PROJECT he says. How Elk Path is developed could n mid-2001,with a booming shown continued confidence in be determined fairly soon. business and dwindling space Orluck Industries and its potential." Nothing is imminent,Mr.Pendroy in his leased facility in Dayton, "I did talk to other cities,too,"Mr. says. But,he says he is cultivating MN,Mark Orluck was getting Orluck admits. But,in the end,he relationships with potential users serious about relocation. His says he made the right choice by of all sizes. goal was to build a new facility selecting Elk River. "The marketplace ingeneral is somewhere in the northwest Twin "Anybody I've dealt with there has p Cities metro area. picking up,"he notes. been really positive and really But,those plans got sidetracked aggressive in trying to make a deal With land becoming increasingly when 9/11 and a declining economy that would work,"he says. scarce and expensive in suburbs slowed the growth of his high "Orluck Industries is a great fit for like Maple Grove,Brooklyn Park precision manufacturing firm. the City of Elk River,"says Mayor and Champlin,"Elk Path is just the Fortunately,times have changed. Stephanie Klinzing. Just as Orluck next logical step,"he says. Orluck Industries Inc.recently is a young but successful company In addition to the specific received final city and county that is ready to take the next step advantages of the Elk Path property, approval for a new $1.41 million, in its growth,the Mayor says, business users will reap the over- 23,000 square foot manufacturing Elk River is an up-and-coming all benefits of an Elk River facility on 2.79 acres in Elk River. community that is ready to take location,including a skilled labor "Manufacturing has really picked the next step in its industrial force,comparable taxes to up for us. It's gradually getting development. surrounding communities,proximity better,"Mr.Orluck says."So,it's just "When they come here,they'll a good time to do it." grow with us,"Mayor Klinzing to manufacturing suppliers and customers,good schools,and a The Elk River Economic says. ■ dynamic Mississippi River Development Department crafted community just 35 miles from an aggressive package of financial For a longer version of this assistance,and city staff shepherded downtown Minneapolis. IIarticle with more details about the project through a fast-paced how Orluck Industries found • approval process this spring. a home in Elk River,please For more information,please We've stuck with them through visit our Web site at contact the Economic the long haul,"says Catherine www.ci.elk-river.mn.us. Development Dept.at Mehelich,Director of Economic (763) 635-1040 or visit us Development. "Elk River has online at www.ci.elk-river.mn.us. tiouirttouig, • Cit of City E &A Newsletter Rr�_ JUNE 2004Ve Enhancing Downtown Elk River's Role 1 As a Vital Retail,Commercial and Residential Area. Q. What is happening with the Downtown River and to assure the public's involvement in the planning Revitalization Project? and design stage. A. On May 3, 2004, the Elk River Housing & Redevelopment Q. What is the anticipated schedule for Authority (HRA) approved the key points of a final develop- the project? ment agreement with MetroPlains Development for the Bluff A. The anticipated project schedule is as follows: and Jackson Blocks. The HRA and developer are working on the final development agreement which will be finalized • TIF District established—late summer 2004 upon the establishment of the Tax Increment Financing (TIF) • Final development agreement—late summer 2004 District. This is expected in late summer 2004. Q. What type of development is proposed for • Land use approvals—fall/winter 2004 the Bluff and Jackson Blocks? • Property acquisition—summer/fall 2004 A. The Bluff Block is located on the southwest corner of Main St. • Land clearance and construction—spring 2005 and County Rd. 42(Parrish Ave. Bridge). The Bluff Block proposal includes a four Q. How will the project be funded? story building with an estimated 68 A. The project will be funded primarily by This Q&A newsletter, . • underground parking stalls; about 10,000 MetroPlains'financing related to future square feet of commercial space on the res onds to some q p sales and rentals of residential and com- first floor along Main Street; 52 for-sale of the recent questions mercial space. The City provides assis- residential units and a riverwalk connec- about, Elk Rifler " tance through Tax Increment Financing tion to a city park. (TIF) as necessary for public improve- .Downtown Revitalization ments. The City has retained financial con- The Jackson Block is located on the i. northeast corner of Jackson Ave. and Project. sultants to ensure that any assistance pro- vided to the developer is only the amount Main St. The Jackson Block proposal that is justifiable and reasonable. includes a three story building with an estimated 50 under- ground parking stalls; 32 rental housing units and about Q. What is Tax Increment Financing (TIF)? 10,000 square feet of commercial space on the first floor A. TIF is a financing tool created by the Minnesota Legislature along Main Street and Jackson Avenue. in the 1970s to help encourage development and redevel- opment of underutilized and/or blighted properties. Under Q. Which of the blocks will be developed first? TIF, property tax revenue equivalent to what the current A. MetroPlains has agreed with the HRA's goal that the Bluff property generates continues to go to all taxing jurisdictions. Block be redeveloped first before the Jackson Block. At this The portion of the tax revenue that results from the time it is unknown how much longer after construction increased value of the new development, also called the begins on the Bluff Block that construction will begin on the "tax increment," is used to pay site costs such as acquisi- Jackson Block. It is possible that construction of both blocks tion, demolition, water, sewer and street improvements. could be done simultaneously. Once the site costs have been paid, the tax increment goes Q. What is the typical time frame for a to the taxing jurisdictions. redevelopment project? Q. Why does the HRA need to establish A. The planning process for a typical redevelopment project a TIF District? can take up to two years. Construction then begins and that A. Minnesota State Statute permits cities to establish TIF • could take two years depending on the size of the project. Districts as a method to assist with redevelopment. For a redevelopment project to work, it must not only meet Establishing a TIF District allows the HRA/City Council to community goals, but also make sense from both a market capture the tax increment created by the new development. and financial perspective. Elk River's project is unique due Then the HRA/City Council may use portions or all of the to the complexities of developing adjacent to the Mississippi increment to provide financial assistance to the developer. CITY OF ELK RIVER DOWNTOWN REVITALIZATION O&A NEWSLETTER JUNE 2004 The amount of the actual assistance provided is determined Q. How will the City address parking needs by an analysis by the City's independent financial advisor. when the Jackson Block is developed? • The financial performance submitted by the developer will A. The City recognizes that since many of the businesses rely be analyzed to determine the gap or amount that would be on public parking, adequate and well located parking necessary to make the development financially feasible. spaces are a key ingredient to the continued vitality of exist- ing and new businesses in downtown. An important part of Q. Will providing TIF assistance to the developer the project will be the development of replacement parking impact my property taxes? by closing the King Avenue access to Highway 10 and A. No. Because the tax increment comes from only the expanding the parking lot behind Kemper Drug for down increased value of the property and the pre-existing level of town businesses and employees. Preliminary designs indi- taxes still continues to be paid to local governments (city, cate approximately 50 additional spaces. The timing of the county and school district), there should be no impact on replacement parking will be coordinated with the Jackson your property taxes. Block construction. Q. Once the final development agreement is Q. Does MetroPlains own the Bluff Block signed, is the redevelopment a "sure thing"? property? A. No, there will still be land use and other regulatory A. MetroPlains is currently negotiating with the Bluff Block prop- approvals, securing of financing, and acquisition of property erty owners.The negotiation process is a private process that must occur before the development is a "sure thing". held between MetroPlains and the property owners. Q. How can I stay informed? A. There are several ways you can stay informed: Q. What happens if the property owners cannot • Attend regular HRA meetings, which are held on the first reach an agreement with MetroPlains? Monday of each month at 5:00 p.m. at Elk River City Hall, A. The City will encourage MetroPlains to reach a voluntary 13065 Orono Parkway. In addition, regular HRA meetings agreement with property owners. If the developer and the are broadcast live and replayed on ERtV Channel 12. property owner are unable to reach agreement, a mediator will be used to assist with the process. If the mediation • Visit the Downtown Revitalization Project Update page of the • process is unsuccessful, the City could pursue the process City's Website located at wwwci.elk river.mn.us of condemnation, but it would only be used as a last resort. • Attend regular Rivers Edge Downtown Business Association meetings held on the second Wednesday of each month at Q. How do the Jackson Block rental housing 8:00 a.m. at the Elk River Area Chamber of Commerce office. rates compare to the current rental housing • Read the Elk River Star News. Articles on the project fre- rates in the downtown? quently appear in the Star News and in the City's newsletter, A. The Jackson Block rates will be $600 to$700 per month, The Current, which is distributed as a Star News insert every which are slightly higher than the current rental housing other month. rates in the downtown. Monthly rent payments will be paid in • Contact the Director of Economic Development Cathy full by the tenant and not subsidized. In today's market- Mehelich or the Assistant Director Heidi Steinmetz at any place, the Jackson Block must compete with market rate time. The Economic Development Department number is developments for it to be successful. (763) 635-1040. City of Elk -�-� River 13065 Orono Parkway Elk River, MN 55330